Will UK CPI Trigger Sterling Bulls and BoE Hawks?

Daily Update - 20th March 2019

Yesterday’s Market

• G20 Meetings

Yesterday's Explained

The G20 finance leaders’ summit taking place in Buenos Aires this week sees tensions over Trump's trade tariffs in plain view, as financial leaders from around the world plead for an endorsement of free trade from the US.

Today’s Market

• Reserve Bank of Australia Monetary Policy Meeting Minutes
• EUR ZEW Survey
• UK Consumer Price Index

Today’s Focus

Early in the day RBA minutes will give a full account of the policy discussion, including differences of view. On the other hand, markets gear up for an action-packed EUR calendar ahead focus will likely be on the German ZEW Economic Sentiment figure, which is forecasted to be EUR negative, with the markets also mindful of what lies ahead at tomorrow’s FOMC meeting. Later in the day, the Eurozone’s consumer confidence flash figure will be released that will provide further direction, though based on forecasts, is unlikely to have a material impact.

For the Pound, it’s a big day, with February’s inflation figures scheduled for release this morning.  As sentiment towards Brexit improves ahead of Friday’s Euro Summit, today’s inflation figures will certainly provide some further direction for the BoE on monetary policy, as the monetary policy committee meet this week and release their policy decision on Thursday.